<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> OCT-31-1998 <PERIOD-START> NOV-01-1997 <PERIOD-END> JUL-31-1998 <CASH> 297 <SECURITIES> 19,571 <RECEIVABLES> 2,990 <ALLOWANCES> 125 <INVENTORY> 2,219 <CURRENT-ASSETS> 27,769 <PP&E> 4,676 <DEPRECIATION> 1,769 <TOTAL-ASSETS> 39,808 <CURRENT-LIABILITIES> 5,316 <BONDS> 1,344 <COMMON> 96 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 32,911 <TOTAL-LIABILITY-AND-EQUITY> 39,808 <SALES> 4,544 <TOTAL-REVENUES> 19,914 <CGS> 1,989 <TOTAL-COSTS> 7,244 <OTHER-EXPENSES> 1,776 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 70 <INCOME-PRETAX> 3,170 <INCOME-TAX> 1,105 <INCOME-CONTINUING> 2,065 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,065 <EPS-PRIMARY> .21 <EPS-DILUTED> .20